August info

I find it strange that all of the sudden things don't look as good as the headlines made the economy seem to be for the last few weeks. Headlines like the FOMC sees a leveling out. That sounds good but even if we are leveling out, we're leveling out with unemployment around 10%+ nationally!! How long will we stay at that. Some states are as high as mid 20% for un and under employed.

The worst news and what seems to be buried when it comes out is that we're starting to see the mortgage mess hit A paper / prime borrowers. I read a scary stat that said that by the end of the year 50% of the homeowners, 50%!!!, will be upside down across the country.

The DOW might be up, but these are speculative indicators. It's up because people have thought or have been lead to believe things are getting better. For example; Cash for Clunkers. The program is already out of money and needed more. The government is basically giving down payments for new cars to be bought off of lots that the existing cars where just sitting.

This made auto sales look good. Cars are moving off lots and then the lots need to replenish their inventory. But will the auto makers hire back full timers or just seasonal part timers to pump out what they need to until the Cash for Clunkers run is over. There never seems to be a shortage of people when the government is handing out free money. What happens when that ends. Cars will sit again.